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October 23, 2026


Selling to the government as a commercial item can skip a lot of red tape. That is exactly why claiming commercial status for something that is not commercial is a growing enforcement target. Here is how to use the commercial-item path honestly.
When you run more than one contract, it can feel harmless to book a few hours or some materials to whichever job has room in the budget. The government calls that cross-charging, and it is a form of fraud. Here is why moving costs between contracts is so dangerous.
The government pays for proof, not just product. When your contract requires inspections, tests, or quality records, signing off on a test you never ran, or passing a part you know failed, is one of the fastest ways an honest shop turns into a fraud case.
One day an envelope arrives from the Department of Justice demanding your records. It is called a Civil Investigative Demand, and it usually means the government is investigating a False Claims Act matter involving your company. What you do in the first days matters enormously.
Bidding low to win your first contract feels like a smart way to break in. The government has a name for it, buying in, and it is risky. When a lowball price depends on recovering the loss later through inflated change orders, a bidding strategy can slide into fraud.
Here is a rule that surprises almost every new contractor. While you hold a federal contract, your company is banned from making federal political contributions. Writing that check, even to be a good community member, can become a crime. Here is the line in plain terms.
On October 8, the Justice Department announced a $1 million settlement with a hardware supplier and its owner accused of buying parts from China, selling them to the military, and certifying Buy American compliance anyway. Here is what every supplier needs to learn from it.